Boxer Retail creates 3 000 jobs in SA store expansion

JSE-listed Boxer Retail created nearly 3 000 new jobs, in the 53 weeks to 2 March, after it opened more than 40 new stores and met the financial forecasts it had made to its investors on the JSE months ago.

The soft discount retailer added 48 net new stores bringing its store network across South Africa and Eswatini to 525. The plan is to open another 60 stores – 25 superstores and 35 liquor stores – in the new financial year.

Additionally, there are plans to expand the distribution centre capacity for the stores, particularly in northern KwaZulu-Natal, chief executive Marek Masojada says.

The additional employees brought its full staff complement close to 32 000 and demonstrated the retailer’s growth, and its efforts to uplift the communities and towns where it operates, he says.

On the financial front, the retailer outperformed its pre-listing guidance with a 5.4% 52-week trading margin, which is ahead of the 5% forecast made prior to the listing.

The maiden published annual financial results – after the biggest listing on the JSE in eight years – delivered a strong performance with consistent market share gains, and the focus in the new financial year is to continue meeting the targets provided before the listing, says Masojada.

Turnover grew by 13.2% to R42.3 billion, and trading profit increased by 9.9% to R2.3 billion. This growth was 17% when excluding non-recurring non-cash gains on the derecognition of a Pick n Pay financial guarantee in the prior year.

Comparing year-on-year performance on a pro forma 52-week basis, turnover increased by 10.4%, in line with pre-initial public offering (IPO) market guidance, while trading profit rose by 7%, and 14.0% when excluding the one-off non-cash gain in the prior year.

Boxer’s discount model, supply chain – which includes six distribution centres currently – and expansion plans, provide it with a strong edge in South Africa’s evolving retail landscape, states Masojada.

He says that many of their consumers are experiencing significant cost of living increases, even though Boxer managed to keep its selling price inflation flat. This was reflected in more consumers closely examining their monthly or weekly grocery purchases to get more value. The group was able to measure this by tracking the uptake of promotional activity.

Boxer’s commitment to “Lower Prices Every Day” was reflected in the normalised full-year internal selling price inflation of 0.3%, after adjusting for mix change impacts, which were influenced by promotional activity.

Boxer had invested in its Boxer Rewards Club loyalty programme and attracted over 1.9 million sign-ups since its launch in October 2024. The club’s benefits include discounts on repeat shopping trips. The loyalty data also provides valuable insights, enabling Boxer to better understand and serve its customers, says Masojada.

He adds that Boxer’s business model continues to work in the communities where its stores are located.

In the past year Boxer’s headline earnings remained flat at -0.1%, reflecting higher net finance costs associated with the new about R850-million external debt introduced as part of the pre-IPO balance sheet restructuring, alongside an increase in the effective tax rate, which offset the positive impact of the operational performance.

Boxer did not declare a final dividend for the 2025 financial year, as indicated in the pre-listing statement. However, the company remained cash generative, was working on reducing debt, and was on target to deliver a dividend at the end of the first half of the 2026 financial year, in line with pre-listing commitments, says Masojada.

“We’re excited about the opportunities ahead and future growth, while there will be economic pressures, this is where Boxer really thrives, meeting challenges is part of our DNA…we are resolutely focused on execution to capture growth opportunities,” he says. – IOL

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